Used as a substrate in enzymatic assays to study cellulase activity, particularly in the breakdown of cellulose. It helps researchers measure the efficiency of cellulase enzymes by monitoring the release of nitrophenol, which can be detected spectrophotometrically. This compound is valuable in biofuel research, where understanding cellulose degradation is crucial for optimizing biomass conversion processes. Additionally, it aids in the development of industrial enzymes for applications in textiles, paper, and detergent industries.